Slide 1: First quarter results 2017
2017 first quarter results 9 May 2017
Slide 2: E.ON fully on track for FY 2017
E.ON fully on track for FY 2017 E.ON 2017 first quarter results Highlights Q1 2017 €m – EBIT1 below prior year mainly due to expected developments in commodity retail and non-core + Q1 not representative for FY 2017 performance + Lower interest accretion and tax rate compensate for operational drive
Slide 3: EBIT below prior year
EBIT below prior year E.ON 2017 first quarter results EBIT1 Q1 2017 vs. Q1 2016 €m -512 60 1.571 1.550 -21 -258 -3 -90 -221 1.038 Q1 2016 Divested Q1 2016 w/o Energy Networks Customer Renewables Corp. Functions Preussen Q1 2017 Operations div. operations Solutions & Other, Elektra Consolidation 1. A
Slide 4: Adjusted Net Income supported by lower accretion and taxes
Adjusted Net Income supported by lower E.ON 2017 first quarter results accretion and taxes Q1 2017 Group EBIT1 1.038 €m Interest on fin. assets/ -175 ~€ 20m improvement YoY liabilities2 Other interest ~€200m improvement due to significant lower accretion of nuclear -20 expenses provisions Profit bef
Slide 5: END improves €1.6 bn due to high cash flow and capital increase
END improves €1.6 bn due to high cash flow E.ON 2017 first quarter results and capital increase END1 Q1 2017 vs. FY 2016 € bn 0.8 AROs -21.4 -21.5 Pension provisions Net financial -4.0 -4.0 position 0.1 1.4 -0.2 -0.9 0.9 -0.6 -24.7 -26.3 END FY 2016 OCF Investments Capital Measures Build & Sell/ Cha
Slide 6: Outlook 2017 confirmed
Outlook 2017 confirmed E.ON 2017 first quarter results Outlook 2017 Effects for remainder of 2017 Energy + Regulatory effects (e.g. NeMoG, pensions), €2.8-3.1 bn Networks lower maintenance costs + Tariff increase in Sweden + Positive development in CZ, HU/ normalization EBIT1 in Turkey Customer + Pr
Slide 7: Appendix
Appendix
Slide 8: Financial Highlights
Financial Highlights E.ON 2017 first quarter results €bn Q1 2016 Q1 2017 % YoY Sales 11.3 10.5 -7 1 EBITDA 2.0 1.5 -25 1 EBIT 1.6 1.0 -34 Adjusted net income 1 0.7 0.5 -20 OCF bIT 0.8 1.0 +33 Investments 0.6 0.6 +1 Economic net debt ² 26.3 24.7 -6 1. Adjusted for non operating effects, 2. Economic n
Slide 9: Cash conversion at 68% due to seasonal effects in Customer Solutions business
Cash conversion at 68% due to seasonal E.ON 2017 first quarter results effects in Customer Solutions business Q1 2017 € bn CCR2: 68% 1.5 0.0 -0.5 1.0 -0.1 0.9 -0.1 -0.6 0.3 EBITDA1 Cash Changes in WC OCF bIT Interest Tax Payments OCF Capex FCF Adjustments Payments 1. Adjusted for non operating effec
Slide 10: Segments: Energy Networks
Segments: Energy Networks E.ON 2017 first quarter results Energy Networks Highlights EBIT1 € m +11% • Germany: + Regulatory benefits 630 570 + Lower maintenance costs • Sweden: Germany 348 418 + Tariff increases • CEE: Sweden + Positive effects in Czech Republic, Hungary 113 132 CEE & Turkey 109 – O
Slide 11: Segments: Customer Solutions
Segments: Customer Solutions E.ON 2017 first quarter results Customer Solutions Highlights EBIT1 € m • Germany: -44% – Higher costs due to increased TSO fees 588 – Lower gas margin due to price decrease in Nov 2016 Germany 120 • UK: 330 – Higher customer churn rates combined with higher cost of sale
Slide 12: Segments: Renewables
Segments: Renewables E.ON 2017 first quarter results Renewables Highlights EBIT1 € m -2% • Offshore: – Low wind yields 163 160 – Adverse FX development following Brexit decision • Onshore: Offshore/Other 104 99 + COD of Colbeck’s Corner in May 2016 + Higher Production of US wind farms Onshore/Solar
Slide 13: Segments: PreussenElektra
Segments: PreussenElektra E.ON 2017 first quarter results PreussenElektra Highlights EBIT1 € m – Lower achieved power prices -89% – Lower volumes due to outages 248 – ARC Depreciation 27 Hedged Prices Germany (€/MWh) as of 31 March 2017 Q1 2016 Q1 2017 2016 100% 37 €m PreussenElektra Q1 2016 Q1 2017
Slide 14: Adjusted Net Income
Adjusted Net Income E.ON 2017 first quarter results €m Q1 2016 Q1 2017 % YoY 1 EBITDA 2,012 1,517 -25 Depreciation/amortization -441 -479 -9 1 EBIT 1,571 1,038 -34 Economic interest expense (net) -422 -195 +54 1 EBT 1,149 843 -27 Income Taxes on EBT 1 -384 -210 +45 % of EBT 1 -33% -25% - Non-control
Slide 15: From EBITDA to Net Income
From EBITDA to Net Income E.ON 2017 first quarter results €m Q1 2016 Q1 2017 % YoY 1 EBITDA 2,012 1,517 -25 Depreciation/Amortization/Impairments -441 -479 -9 1 EBIT 1,571 1,038 -34 Economic interest expense (net) -422 -195 +54 Net book gains -4 52 +1,400 Restructuring -49 -94 -92 Mark-to-market val
Slide 16: Cash effective investments by unit
Cash effective investments by unit E.ON 2017 first quarter results €m Q1 2016 Q1 2017 % YoY Energy Networks 195 260 +33 Customer Solutions 107 64 -40 Renewables 241 251 +4 Corporate Functions & Other 33 8 -76 Consolidation 1 0 -100 PreussenElektra 4 5 +25 Investments 581 588 +1 1. Adjusted for non o
Slide 17: Economic Net Debt
Economic Net Debt1 E.ON 2017 first quarter results €m 31 Dec 2016 31 Mar 2017 Liquid funds 8,573 10,227 Non-current securities 4,327 4,265 Financial liabilities -14,227 -14,208 Adjustment FX hedging ² 390 479 Net financial position -937 763 Provisions for pensions -4,009 -3,963 Asset retirement obli
Slide 18: Economic interest expense (net)
Economic interest expense (net) E.ON 2017 first quarter results Difference €m Q1 2016 Q1 2017 (in € m) Interest from financial assets/liabilities -168 -175 -7 Interest cost from provisions for pensions and similar provisions -22 -21 +1 Accretion of provisions for retirement obligation and similar pr
Slide 19: Financial Liabilities
Financial Liabilities E.ON 2017 first quarter results Split Financial Liabilities Maturity profile (as of end Q1 2017)1 € bn € bn 4.2 31 Mar 2017 Bonds -11.9 in EUR -4.7 2.7 EUR in GBP -4.0 2.3 GBP in USD -2.8 USD in JPY -0.2 1.4 YEN 1.1 Other in other denominations -0.2 Promissory notes -0.4 0.4 Co
Slide 20: E.ON Focus – Our basis for steering the company
E.ON Focus – E.ON 2017 first quarter results Our basis for steering the company E.ON FOCUS – medium-term framework Capital structure Strong BBB / Baa Profit Cash Return Growth Group EBIT1 & EPS4 Cash conversion ROCE3 DPS rate2 ≥ 80 % 8 – 10 % FY 2017: € 30ct (fixed) Dividend payout Post 2017: 50 – 6
Slide 21: E.ON Investor Relations contacts
E.ON Investor Relations contacts E.ON 2017 first quarter results Alexander Karnick T+49 (201) 184 28 38 Head of Investor Relations alexander.karnick@eon.com Martina Burger T +49 (201) 184 28 07 Manager Investor Relations martina.burger@eon.com Conny Ripphahn T +49 (201) 184 28 34 Manager Investor Re
Slide 22: Financial calendar & important links
Financial calendar & important links E.ON 2017 first quarter results Financial calendar May 10, 2017 2017 Annual Shareholders Meeting August 9, 2017 Interim Report II: January – June 2017 November 8, 2017 Interim Report III: January – September 2017 March 14, 2018 Annual Report 2017 May 8, 2018 Inte
Slide 23: Disclaimer
Disclaimer E.ON 2017 first quarter results This presentation contains information relating to E.ON Group ("E.ON") that must not be relied upon for any purpose and may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose. By a